Question: The variable cost per unit for a proposed project is $7.36 and the annual fixed costs are $25,800. These costs can vary by 3 percent.

The variable cost per unit for a proposed project is $7.36 and the annual fixed costs are $25,800. These costs can vary by 3 percent. Annual depreciation is $12,970 and the tax rate is 21 percent. The sale price is $13 a unit, 2 percent. If the firm bases its sensitivity analysis on the expected outcome, what will be the operating cash flow for a sensitivity analysis of 10,000 units?

OCF for 10,000 units =

What will be the operating cash flow for a sensitivity analysis of 9,900 units?

OCF for 9,900 units =

don't round steps, 2 decimal answers

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